300 million reasons why AbitibiBowater needs a rethink

"AbitibiBowater's stubborn refusal to halt destructive logging practices and operations in intact areas of Canada's Boreal Forest is eroding the confidence of its customers," said Kim Fry, a forest campaigner with Greenpeace.

Over the last year, several major European newspaper conglomerates have cancelled contracts with the company over concerns about AbitibiBowater's forestry practices. Additionally, Sun Media, Transcontinental, Hachette Books UK and Simon & Shuster have released new, environmental paper procurement policies that limit their purchases from AbitibiBowater. The losses total millions of dollars.

As part of its earnings call, AbitibiBowater also acknowledged it is investigating new markets beyond North America where there is a sharp decline in demand for newsprint, lumber, pulp coated paper and groundwood.

"With losses of over $300 million this quarter alone, it's clear that AbitibiBowater needs a rethink. Instead of crossing their fingers and hoping the Canadian dollar and energy costs will decline, AbitibiBowater should realize that environmental and financial sustainability go hand in hand," said Fry. "Growth markets such as Europe are already sensitized to environmental issues and the Brazil market is increasingly becoming engaged around environmental risk."

Greenpeace says an important step for AbitibiBowater to take is to suspend logging in the most critically sensitive intact areas of Boreal Forest and focus operations in already fragmented and degraded areas.

The Boreal Forest is the largest ancient forest left in North America and as the largest terrestrial storehouse of carbon on the planet is critical to fighting global climate change. Less than 9 per cent of the forest is protected from industrial development.